North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Northern Dynasty Minerals Ltd. Jan. 11 announced plans to raise US$25 million, a financing that quickly swelled to US$32.56 million due to the immediate demand for the shares being offered.

The original bought deal offering - made through a syndicate of underwriters co-led by Cantor Fitzgerald Canada Corp., TD Securities Inc. and BMO Capital Markets - involved 13.52 million Northern Dynasty shares at US$1.85 each.

As a result of strong demand, Northern Dynasty said it had increased the offering to 17 million shares on Jan. 12.

Additionally, the underwriters were granted the option to acquire another 2,028,000 shares up to 30 days after the closing of the offering, which could increase the overall financing by US$3.75 million.

Northern Dynasty has agreed to pay a 5 percent cash commission to the underwriters.

Northern Dynasty will use the net proceeds to ready its Pebble Project in Southwest Alaska for permitting.

The first step of this process is to complete its strategy to persuade the U.S. Environmental Protection Agency to lift its pre-emptive limitation on a mine that can be developed at the enormous copper-gold-molybdenum deposit and allow a the project to be vetted under the existing state and federal permitting process.

At the same time, the Pebble Partnership - currently owned solely by Northern Dynasty - will continue environmental monitoring, engineering and environmental studies, field investigations and related technical studies to finalize a proposed development plan for Pebble.

Northern Dynasty said it also will use the money raised for enhanced political, regulatory and stakeholder outreach, and other corporate needs.

-SHANE LASLEY